Crypto Privacy Protocol Railgun Thwarts Inferno Drainer's Attempt to Launder Stolen Funds

Alan Scott Jr, a Railgun contributor, explained to Cointelegraph that Inferno's attempt to exploit the Ethereum-based privacy protocol was halted by Railgun's automated private proofs of innocence (PPOI) system.

Crypto privacy protocol Railgun has successfully thwarted an attempt by notorious crypto Drainer Inferno to launder stolen funds.

On July 9, MistTrack reported that Railgun had blocked an attempt to launder over 174 Ether (approximately $533,000) through the protocol.

This resulted in the stolen ETH being returned to Inferno’s original wallet address.

According to Alan Scott Jr., a contributor to Railgun, Inferno’s attempt to exploit the Ethereum-based privacy protocol was halted by Railgun’s automated private proofs of innocence (PPOI) system.

“The tokens could only return to the attacker’s address — they were not welcome in RAILGUN,” Scott told Cointelegraph.

He added that the PPOI system ensures that tokens sent by malicious actors can only be returned to the initial shielding wallet.

“This is part of PPOI. The technology is brand new, but this is a great example that shows how it works.”

Established in January 2021, Railgun utilizes zero-knowledge (ZK) cryptography to conceal wallet balances, transaction histories and other details.

This enables users to privately interact with decentralized applications (DApps) on Ethereum or other supported chain.

Launched in January 2023, Railgun’s PPOI system ensures that tokens entering the Railgun smart contract are not linked to any known undesirable transactions or actors.

READ MORE: Mt. Gox Begins Long-Awaited Bitcoin Repaym

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